A savings account has a 3% interest rate. (a) Complete the ratio table shown. Show your work. Deposit ($) 100 50 300 Interest ($) 12 (b) How much more interest would you have if you deposited $200 than if you deposited $150? Show your work.

Question

Mathematics

Virginia Thompson

8 August, 01:46

A savings account has a 3% interest rate. (a) Complete the ratio table shown. Show your work. Deposit ($) 100 50 300 Interest ($) 12 (b) How much more interest would you have if you deposited $200 than if you deposited $150? Show your work.

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Harper Perez · Answer 1

The amount of interest of the money invested in a savings account is calculated through the equation,

I = Prn

where I is the interest, P is the principal, r is the decimal equivalent of the given rate, and n is the number of years. In this item, we assume that n is equal to 1.

Solving for the interests,

$200: I = ($200) (0.03) (1) = $6

$150: I = ($150) (0.03) (1) = $4.5

The difference between the two calculated interests is $1.5.

Therefore, you could have earned $1.5 more if you invested $200 rather than $150.